Tenneco Clean Air India Posts Strong Q3 FY2026 Results on New Wins and Expansion

Tenneco Clean Air India Limited announced its financial results for the third quarter and nine months of FY2026 on February 13, 2026, reporting robust growth across key financial metrics and highlighting several strategic milestones.

Financial Performance

The company reported revenue from operations of ₹1,285.3 crore in Q3 FY2026, compared to ₹1,125.1 crore in the same period last year, representing a 14.2% year-on-year increase. Value-added revenue (VAR) — the company's primary performance metric, which strips out pass-through substrate costs — grew 14.7% to ₹1,194.1 crore.

EBITDA rose 24.8% year-on-year to ₹222.5 crore, with EBITDA margin expanding to 18.6% from 17.1%, attributed to operating leverage, commercial actions, and cost management. Profit after tax (PAT) came in at ₹118.8 crore, a decline of 5.3%, though adjusted PAT — excluding a one-time charge of ₹20.3 crore related to the implementation of the new labour code — grew 11.0% to ₹139.1 crore.

The company's Advanced Ride Technologies segment was a standout performer, posting 24.5% year-on-year growth, while Clean Air and Powertrain Solutions grew 5.4%. Return on capital employed (ROCE) for the nine-month period exceeded 80%, compared to over 40% in the prior year period.

Business Wins and Technology Milestones

A key highlight of the quarter was the selection of Tenneco's DaVinci DCx advanced suspension system by a leading Indian OEM for a new-generation flagship SUV platform. The program is estimated to generate approximately ₹220 crore in annual revenue. The system uses specially designed discs to control hydraulic flow, delivering ride comfort across varied road conditions without reliance on software, electronics, sensors, or motors.

The company also secured a Clean Air contract with a leading global commercial vehicle OEM, based on a modular inline BSVI aftertreatment system, carrying an annual revenue potential of approximately ₹115 crore.

Expansion Plans

Tenneco Clean Air India announced board approval for a new greenfield Clean Air manufacturing plant in Kharkhoda, Haryana, targeting proximity to northern customers and supporting growth across Light Vehicle, Off-Highway, and Tractor segments. The project involves capital expenditure of approximately ₹71 crore, with production expected to commence in Q3 FY2027.

Arvind Chandra, Whole-Time Director and CEO, noted that the company's export order book is strong, with current orders already covering 100% of projected FY2028 revenue, and cited recent tariff and duty reductions by the U.S. and EU as potential tailwinds for export growth. He indicated the company expects double-digit CAGR growth over the next three years.

Tenneco Clean Air India operates 12 manufacturing facilities and two R&D centers across key automotive hubs in India, supplying products under brands including Champion® sparkplugs and Monroe suspensions.